Rebel1, while your numbers stack up the key thing with buying the right property in any environment is not about location location location. It's to be able to attract a home buyer not another investor when you sell it.
Investors don't hold any emotional attachment to real estate and therefore have choices if they miss out on place during an auction. Investors are better negotiators than homebuyers. Home buyers are full of emotion and when they find the place the love they will pay top price and in many cases extend themselves to get what they want no matter what the environment. This is important when buying apts. Investors should buy the right apt that will attract a future home buyer that will down size from their suburban home. not another investor.Why people would buy student accommodation apts, bed sitters, 1 bed dog boxes or apts run by hotel mngt is plain stupid. There is zero growth when you do the real numbers.
Regional property will enjoy growth at a slower rate than inner city suburbs and don't discount that more and more new Australian will flock to these regions adding to the capital growth.
Research and apply common sense when investing but never forget to ask your girlfriend or wife the most important question...would you live here? Before you buy. Women know best.
